Singulus Technologies AG (ETR:SNG) Has Found A Path To Profitability

We feel now is a pretty good time to analyse Singulus Technologies AG's (ETR:SNG) business as it appears the company may be on the cusp of a considerable accomplishment. Singulus Technologies AG develops and assembles machines and systems for thin-film coating and surface treatment processes in Germany, rest of Europe, North and South America, and Asia. With the latest financial year loss of €14m and a trailing-twelve-month loss of €11m, the €76m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Singulus Technologies' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

According to the 3 industry analysts covering Singulus Technologies, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of €550k in 2026. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 109% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Singulus Technologies' upcoming projects, but, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

See our latest analysis for Singulus Technologies

Before we wrap up, there’s one issue worth mentioning. Singulus Technologies currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

This article is not intended to be a comprehensive analysis on Singulus Technologies, so if you are interested in understanding the company at a deeper level, take a look at Singulus Technologies' company page on Simply Wall St. We've also put together a list of key aspects you should further research:

1. Valuation: What is Singulus Technologies worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Singulus Technologies is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Singulus Technologies’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.